Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

December 21, 2009 17:03 ET

Channel Resources Conducts Partial Closing of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that, further to its news release issued December 2, 2009 announcing a $300,000 non-brokered private placement of units (the "Units"), the Company has conducted a partial close of the offering through the issuance of 3,162,500 units at a price of CDN$0.08 per Unit for gross proceeds of $253,000. Each unit is comprised of one common share of the Company ("Common Share") and one share purchase warrant (a "Warrant"), with each Warrant being exercisable for one Common Share at an exercise price of CDN$0.11 for a period of 24 months. The securities issued pursuant to this tranche of the private placement are subject to a statutory resale restriction period of four months, which expires on April 22, 2010. The second tranche of the private placement is expected to close by January 15, 2010.

Finders acting in connection with this partial closing of the private placement received aggregate fees of $12,600. Following the completion of this closing of the private placement, Channel has 63,031,244 Common Shares issued and outstanding.

The proceeds of the private placement will be used to fund exploration and pre-development work on its properties, primarily the Fox Creek Lithium / Potash Brine Project located in Alberta, as well as for corporate development and working capital purposes. Final completion of the private placement is subject to execution and delivery of standard documentation and receipt of all required regulatory approvals and consents, including the approval of the TSX Venture Exchange.

Some of the statements contained herein are forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the price of minerals, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Further disclosure on risk factors is available in the Company's various corporate filings at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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